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Volvo ABVOLAF -1.64%90 Debt-to-Equity is 1.47 as of Jun. 2026, which is 17% above its 10-year median of 1.26. GuruFocus rates VOLAF with a GF Score™ of 90/100 and a GF Value™ of $25.19 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 185 Farm & Heavy Construction Machinery companies, Volvo AB ranks worse than 89.19% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Volvo AB's Debt-to-Equity or its related term are showing as below:
VOLAF'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0.91 Med: 1.26 Max: 1.66
Current: 1.47
During the past 13 years, the highest Debt-to-Equity Ratio of Volvo AB was 1.66. The lowest was 0.91. And the median was 1.26.
VOLAF's Debt-to-Equity is ranked worse than 89.19% of 185
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 0.36
vs VOLAF: 1.47
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Volvo AB Debt-to-Equity Related Terms
Volvo AB Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for Volvo AB's Debt-to-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Farm & Heavy Construction Machinery subindustry, Volvo AB's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Volvo AB Debt-to-Equity vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Volvo AB's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Volvo AB's Debt-to-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Volvo AB (VOLAF) has a Debt-to-Equity of 1.47 as of Jun. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Volvo AB and its competitors. This is 17% above median its historical median of 1.26. Over the past decade, Volvo AB's Debt-to-Equity has ranged from 0.91 to 1.66. According to the industry distribution chart, Volvo AB ranks #165 out of 185 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 89.2%.
Is Volvo AB's Debt-to-Equity too high?
Volvo AB's current Debt-to-Equity of 1.47 is 17% above median its 10-year median of 1.26. Over the past 10 years, this metric has ranged from a low of 0.91 to a high of 1.66. The Farm & Heavy Construction Machinery industry median Debt-to-Equity is 0.36. Volvo AB's value of 1.47 is 308.3% above this industry median. Based on the distribution chart, Volvo AB ranks #165 out of 185 companies in the Farm & Heavy Construction Machinery industry, which is in the bottom quartile relative to peers. Overall, Volvo AB has a GF Score™ of 90/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Volvo AB's Debt-to-Equity compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Volvo AB ranks #165 out of 185 companies for Debt-to-Equity. This places Volvo AB in the lower half of its industry. The industry median Debt-to-Equity is 0.36. Volvo AB's value of 1.47 is 308.3% above this benchmark. Historically, Volvo AB's own Debt-to-Equity has ranged from 0.91 to 1.66 over the past decade. While the company's 10-year median is 1.26 vs. the industry median of 0.36, Volvo AB has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-Equity for a Farm & Heavy Construction Machinery company?
The median Debt-to-Equity among Farm & Heavy Construction Machinery companies is 0.36, based on 185 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Volvo AB's current Debt-to-Equity of 1.47 is 308.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Volvo AB and its competitors. For the Farm & Heavy Construction Machinery industry, the median Debt-to-Equity is 0.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Volvo AB's current Debt-to-Equity is 1.47, which is 17% above median its own 10-year median of 1.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Volvo AB stock overvalued right now?
Based on GuruFocus' analysis, Volvo AB (VOLAF) is currently considered Significantly Overvalued. The stock's GF Value™ is $25.19, compared to a current price of $34.15 — trading 35.6% above its estimated fair value. The current Debt-to-Equity is 1.47, which is 17% above median its 10-year median of 1.26 and 308.3% above the Farm & Heavy Construction Machinery industry median of 0.36. Volvo AB's overall GF Score™ is 90/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Volvo AB (VOLAF), the current Debt-to-Equity is 1.47 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Volvo AB (VOLAF) Overvalued in 2026?
Based on GuruFocus' analysis, Volvo AB stock appears to be overvalued.
The current stock price of $34.15 is trading 35.6% above its estimated GF Value™ of $25.19.
GuruFocus considers Volvo AB to be Significantly Overvalued.
Key valuation signals for VOLAF:
Debt-to-Equity: 1.47 (17% above median its 10-year median of 1.26)
GF Value™: $25.19 vs. price of $34.15 (35.6% above fair value)
Industry Position: 308.3% above the Farm & Heavy Construction Machinery median (#165 of 185)
No single metric tells the full story. See the VOLAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Volvo Group is one of the largest global truck, bus, construction equipment, and engine and power system original equipment manufacturers, operating with the Volvo, Renault Truck, Mack Trucks, Volvo Penta, and Nova Bus brands. Among the four largest Western global brands—Volvo, Daimler, Paccar, and Traton—Volvo ranks third in terms of annual deliveries. Its truck, construction equipment, bus, and engines and power system segments contributed 71%, 18%, 5%, and 5%, respectively, to industrial operations' revenue in 2025. An in-house financial services division supports these businesses. In its key regions of Europe, North America, Brazil, and Australia, the truck business holds large market shares of 29%, 17%, 24%, and 22%, respectively.
90GF Score
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